The pants were recalled because they were unintentionally see-through. The defective product represented 17% of all women's yoga pants sold in Lululemon stores, and prompted a shortage of the pants.

Last month, the retailer warned that the recall would significantly hurt its financial results. The company, expected to report first-quarter results in June, said same-store sales are projected to increase 5% to 8% in the period, down from its earlier forecast for a gain of 11%.

"We appreciate the many contributions that Sheree made during her time with Lululemon, particularly in the area of design," Lululemon's CEO Christine Day, said in a statement.